Technology Archives - Your Life for Less

What are MVNOs, and How Can They Save You Money?

19. March 2013 · Write a comment · Categories: Cell Phones, Save, Technology · Tags: cell phones, MVNO, non-contract

Watch out, AT&T and Verizon.

You’ve probably noticed a lot of new cell phone companies popping up recently. Most of these are known as MVNOs, or Mobile Virtual Network Operators. What the heck?

Basically, MVNOs are retailers that buy voice and data coverage from the giant companies we all know. AT&T, Verizon, Sprint, T-Mobile and others own the cell phone towers and something known as spectrum, or airwaves through which our communications flow. Most of this spectrum is reserved for their own customers, but some is made available to the MVNOs, who buy it at wholesale rates. It’s then sold to you at a deep discount.

What’s so great about these new players? Lots of things. They’ve turned the traditional contract-oriented business model on its head, and eliminated most of the drawbacks we associate with major cell phone providers.

Let’s talk about cost. You typically pay about half as much per month as you would with one of the Big 4. Virgin Mobile USA, which runs on Sprint’s network, offers plans starting at $35 a month. This plan includes unlimited data and texts and 300 voice minutes a month.

If you talk more than that, the industry standard for unlimited everything is $45 a month. That’s what Straight Talk, the best-known MVNO, charges for their plan. Depending on which phone you get with Straight Talk, you could be on any of the four major networks.

MVNOs operate on a prepaid business model, where you pay for service up front. They offer non-contract service, which means they darn well better provide good service and treat you well. If they don’t you’re free to kick them to the curb at any time.

Compare that with the Big 4, whose business model depends on slapping you with two-year handcuffs. You think they’re very motivated to provide service once you’re a prisoner?

The downside for MVNOs is that the phones aren’t subsidized. You have to pay real money for a new one – often $200 or $300 – depending on how fancy you want to get. The tab goes up to $500 or more if you want the newest iPhone.

For most consumers, that big upfront cost is downright scary. We’re used to getting a new phone every 18 to 24 months and paying no more than $200. Some can even be free, depending on promotions at the time. But that initial savings is easily eaten up with the higher monthly rates.

Let’s look at an example. At Verizon, you get one smartphone with 2GB of data for $100 a month ($110 after taxes and fees). You choose the Samsung Galaxy S III, which sets you back another $200. Total cost over two years: $2,840

Compare that with Straight Talk. You get unlimited talk, text and data for $45 a month. The closest phone they offer is the Samsung Galaxy S II for $350. Total cost over two years: $1,430

You’ll have to settle for the previous generation phone, but it’s always best to avoid state-of-the-art anyways. Even with the higher upfront cost you’ll pay exactly half with Straight Talk. The same is true with any of the other MVNOs.

My contract with AT&T expires later this year. I’m excited to explore the non-contract options over the coming months and see what’s out there.

It’s never been easier to escape the clutches of a two-year contract. The savings are real. What would you do with $1,400?

[Note: If you're curious, Wikipedia has an excellent list of MVNOs and which major network they're on.]

Photo by sciencedaily.com

Money-Saving Cell Phone Alternatives

05. February 2013 · 2 comments · Categories: Cell Phones, Save, Technology

How many cell phone minutes do you use each month? Chances are it’s a lot fewer than you’re paying for.

But even if you do talk a lot, cell phones aren’t always the cheapest way to make those calls. Sure, there are times when only a cell phone will work. But if you do a lot of your calling from home, switch to one of these alternatives to save big each month.

I’ll start with the cheapest option and work up to the most expensive (but still cheaper than buying minutes from the cell phone company.)

Google has a service creatively known as “Call phones from Gmail” that lets you call any phone in the US and Canada from within Gmail. They recently announced it will be free for all of 2013. I tried this out the other day after getting fed up with AT&T’s poor cell phone reception in my apartment, and the calls were crystal clear. The caller on the other end said it sounded like I was in the other room talking.

All you have to do to start making calls is install a plugin and log into Gmail. They also offer free video chats, which I didn’t test.

Another option is magicJack Plus. While the original magicJack required a computer to use, this one works with or without a computer. And that’s a game-changer, because who wants to wait for a computer to boot up before making a call? Just plug the device into your modem, and after a brief registration you’re up and running. You can even transfer your current number.

They’re doing a free 30-day trial right now, so check it out. After that it’s $20 a year.

Finally, there’s Ooma. Don’t ask me how they came up with a name like that, but according to Consumer Reports, Ooma is tops in call quality bar none. That includes land lines from AT&T, Verizon and others.

The most expensive of the three, it’s also pretty darn convenient. You don’t need a computer up and running to use Ooma. Yes, it works through the internet, but it plugs straight into your modem. Just like MagicJack, you plug your home phone into the Ooma device and start talking.

Ooma costs anywhere from $130-$150 for the device, although I saw it on sale at Costco for $100 recently. The only other costs after that are about $45 a year in government taxes and fees. You may be able to save that in one month by reducing your cell phone minutes.

My take: If you don’t mind using a headset and sitting at your computer, the first option is best. But if you like using an actual phone and enjoy the flexibility to move around the house, the other two are better options.

All three of these services offer unlimited calls over the internet for basically zero dollars. If you’re on the fence about reducing your cell phone minutes, take the leap and give one of these a try. Talking over the internet is a heck of a lot more cost efficient that busting your budget with the cell phone company.

The call quality is much better, too.

Ways to Save on your Cell Phone Bill

Photo by telebiz.com

When Canceling Cable or Satellite, Get it in Writing

15. January 2013 · 4 comments · Categories: Technology

More of us are becoming wise and developing money-saving ways like unplugging from cable or satellite service. For the typical family, this saves $80 a month, or nearly $1,000 each year.

And that doesn’t include the time you’ll save by not parking yourself in front of the TV so much.

“This is great!”, you may be thinking. “Who knew I could save so much money from my paid TV service alone!”

Just because you may be thrilled to save all this money, you can’t assume the cable or satellite company will be equally excited to see you go.

When cutting the cord, most people call the company and cancel over the phone. They assume that after hanging up they don’t have to take any more steps.

That could end up being a costly assumption.

Some providers are so sad to see you leave that when you call to cancel they suspend your service for a few months rather than cancel it outright. How nice of them to assume that we’ll miss them so much six months from now that they’ll just start the service back up without our knowledge or permission!

You may even receive a confirmation email of your phone conversation, but you won’t notice this little gotcha until you read the fine print on page 34.

This is exactly what the desperate cable and satellite TV operators are doing. They’re bleeding subscribers and can’t afford to lose you too.

After canceling service, you typically have 14 days to return their equipment. Some providers send you a postage-paid box to send it back in, while others require you to bring it to their local office. Those who don’t take this extra step may notice a charge of several hundred dollars for a cable box and remote on their final statement.

Even when you do send the equipment back on time, the records at the cable or satellite company may become inaccurate over time. If they incorrectly show you as never having returned their stuff, they’ll send your account to collections and you may find yourself getting calls from a collection agency years down the road.

So how do you protect yourself against rogue providers in the cable and satellite industry?

There are two things you must do each time you cancel cable or satellite service. First, get an email confirmation of your permanent cancellation after you talk with customer service over the phone. Look through the email to make sure they didn’t simply suspend your account for six months. You may have to call back a time or two until you get someone who is competent enough to complete your transaction.

Second, before you release the package containing their equipment to FedEx or UPS, get a receipt showing when you sent it. Hold on to the receipt. Then if a collector calls years later saying you owe them for the equipment you’ll have documentation to prove otherwise.

Photo by ehow.com

9 Tips to Stay Safe Online

11. December 2012 · 4 comments · Categories: Technology

We’re spending more time online than ever. With each new device that comes out, our options for staying connected increase. Heck, our DVD players are now connected to the internet.

The Net offers convenience, entertainment and ways to stay connected with those around us, but it also exposes us to new threats. We all want the upside without having to worry about the downside.

So what I’ve outlined below is a series of easy-to-remember tips that will keep you happily blogging, buying, surfing…or whatever you do on the Net.

The first and most obvious thing you can do to keep yourself safe is to (1) use strong passwords. For every website you log into, you need a unique password that contains letters, numbers and symbols. For convenience, use one of your hobbies or your favorite sports team and change up the letters a bit. For example, someone who enjoys fishing might choose f1shIngF@n.

Experts recommend using a different password for every site. If you’re like me you visit about three dozen sites every day. Remembering that many unique passwords wouldn’t be possible without a program like LastPass, which remembers your password for you each time you visit a site.

To keep your computer up-to-date against the latest viruses, you need to (2) set your antivirus program to download and install updates automatically. But for it to be any good, you need to put your antivirus software to work occasionally. At least once a month, (3) scan your entire computer for viruses. To round out your toolbox, scan for malware using Spybot Search & Destroy and Malwarebytes.

Your browser, operating system and other software also need to be kept up to date. So (4) don’t ignore the update notifications that pop up on your toolbar, thinking you’ll get to them later. These updates are your best defense against the latest viruses.

Here’s another no-brainer, but some of us still forget: (5) don’t open suspicious emails. If you don’t know who the sender is, do yourself a favor and hit delete without even opening it. And be careful with emails that appear to be from companies or people you trust – I talked earlier about the fake Facebook notification emails.

Since most of us, including myself, do our banking and shopping online, I have three tips to keep your finances safe. First, (6) don’t check your bank accounts on public networks. That includes the free wi-fi you find at coffee shops and airports, but also public computers at the library. These networks are not secure, so anything you type could be intercepted by criminals. You may disagree with me here, but I think it’s best to avoid doing anything involving your finances while on a public network.

When you go to buy something online, (7) look for the lock in the address bar. You should also see the “s” in “https://” telling you the page is encrypted. (8) Your method of payment should always be credit card. If you pay with a credit card and something goes wrong, all you have to do is dispute the charge with your credit card company. But if you pay with a debit card, it’s your money that’s gone and you have to fight your bank to get it back.

I have one last tip for you as you’re getting your daily fix. Criminals are getting more sophisticated every day in their ability to swipe our personal stuff. Online, things aren’t always what they seem to be. So my last tip is to be careful out there. (9) Think before you click and you’ll stay out of trouble.

Photo by hashout.blogspot.com

Ripoff Alert #13 – Facebook Photo Tagging

27. July 2012 · 4 comments · Categories: Scams & Ripoffs, Technology · Tags: Facebook, photo tagging, ripoffs, scams, virus

The Ripoff Alert is a new series appearing once each week on Fridays. It alerts you to the latest scams and ripoffs trying to get between you and your money, and gives you information you need to stay safe.

Facebook Photo Tagging Virus

Everybody and their 8 year-old kid is on Facebook. In August, the site is expected to reach 1 billion active users a month. These users upload 300 million photos each day.

So naturally, Facebook and its users are ripe targets for scam attempts. Several technology blogs are reporting a new, widespread attempt by scammers to load a virus onto your computer via the photo-tagging notification system.

Here’s how it works: You receive an email saying you’ve been tagged in a photo. You open the email, and it looks very similar to notification emails you’ve always received from Facebook. You click the link and BAM – a virus is loaded onto your computer in just 4 seconds. Then you’re redirected to a real-looking Facebook page. It’s quick, seamless, and you probably didn’t notice a thing.

But before you click on any links, look closely at the sender’s email address. You’ll notice it’s spelled “Faceboook” with three Os. Another way you can tell it’s a ruse is to hover your mouse pointer over any links in the email. Without clicking, you should be able to see they won’t take you to Facebook.

The scamsters know we’ve all received so many of these notification emails in the past that we don’t even think about it anymore. They are using our trust against us. Or maybe just our habits.

Make it a habit to be suspicious of any emails you receive that have links in them. Before you click, make sure you really recognize the email address. In this case, it’s probably best to just delete the email, log into your Facebook account using a new tab, and look at the new photos on your profile page.

Think before you click and you’ll stay out of trouble.